OUR GOVERNANCE

Corporate governance aligned to King IV principles

Principle 16:
Stakeholder Relationships

King IV principles and our activities
STAKEHOLDER RELATIONSHIPS
  • Principle 16 – In the execution of its governance role and responsibilities, the governing body should adopt a stakeholder-inclusive approach that balances the needs, interests, and expectations of material stakeholders in the best interests of the organisation over time
  • We continually engage with all our stakeholders to understand and respond to their needs, interests, and expectations
    • These include government, the public, members, and suppliers, such as bankers, custodians, administrators, and Fund Managers
  • We seek to continually build strategic partnerships and maintain relationships with our stakeholders
    • This helps us to manage the expectations of society, minimise reputational risk and form strong partnerships, which all underpin business sustainability
  • Ongoing engagement and evaluation of the quality and value we deliver to our stakeholders is vital to address sustainability concerns and interests and inform our strategic priorities
Outcomes
Desired outcome:

A stakeholder-inclusive approach that balances the needs, interests, and expectations of material stakeholders in the best interests of the organisation over time.

  • Open communication with our stakeholders, based on openness, transparency, trust, and good understanding of expectations
  • Sound relationships with our stakeholders to underpin business sustainability, ethics, and organisational integrity within the social, legal, and economic context of the country
Summary of the arrangements for governing and managing stakeholders
  • The Staff Administration and Corporate Affairs Committee (SACA) oversees the Fund’s approach to stakeholder engagement
  • Stakeholder engagement reporting to SACA
  • Stakeholder engagement surveys
  • Board approved Stakeholder engagement policy
Key areas of focus during the reporting period
Measures taken to monitor stakeholders and how the outcomes were addressed
  • Maintain a stakeholder engagement register of interactions with the various stakeholders
  • The Board approves business targets at the beginning of every financial year and reviews the results at the end of the year before making a final decision regarding payment of any incentives
  • Considered results of stakeholder engagement surveys and action plans to address areas of improvement
Planned areas of future focus

Principle 17:
Responsible Investments

King IV principles and our activities
STAKEHOLDER RELATIONSHIPS
  • Principle 17 – The governing body of an institutional investor organisation should ensure that responsible investment is practiced by the organisation to promote good governance and the creation of value by the companies in which it invests
  • Approval of investment of member funds is reserved for the Board in consultation with the Minister of Finance, Planning and Economic Development and this is in line with Section 30 of the NSSF Act
  • The Fund invests prudently, in mature markets, whose returns are predictable
  • The aggressiveness for growth is in the Allocation of Assets, governed by an investment policy. See CIO's Business Review
Outcomes
Desired outcome:

Ensure that responsible investment is practiced by the organisation to promote the good governance and creation of value by the companies in which it invests.

  • Prudent investment decisions
  • Stability of returns to members
Summary of the arrangements for governing responsible investments
  • The Investments and Project Monitoring Committee (IPMC) oversees the Fund’s approach to investing responsibly
  • The Fund continues to invest in ESG compliant companies
  • Board approved investment policy
  • Formalised investment strategy
Key areas of focus during the reporting period
Measures taken to monitor responsible investments and how the outcomes were addressed
  • Investment proposals are considered by the Board in consultation with the Minister
  • The Board reviews performance of real estate projects, equities, and fixed income on a quarterly basis in line with the targets
  • The Board reviews the performance of the Fund Managers at least twice a year
  • The Board considers ESG issues in investments decision-making
  • Ongoing review of the Fund’s strategic asset allocation
Planned areas of future focus